Form 1099 - R Codes
Form 1099-R - Distribution from retirement accounts When you take out money from your retirement accounts, you receive form 1099-R from the payer. Here we present the basic idea on the codes on 1099-R. You might receive distributions from your retirement accounts for various reasons but some of the reasons are listed below. The income from retirement account falls under ordinary income on form 1040 line 4b or 5b. Loans against pension plans Annuity and pension payments Account rollovers – example, from one brokerage to another Early retirement account distributions What are the boxes on form 1099-R Box 1: total amount of distribution from a retirement plan or annuity, this is the gross amount of dollars you received from the plan. It may be taxable or not depending on many factors. Box 2: taxable amount of the distribution reported by the payer. Thus, the retirement plan or annuity has determined what the amount to include in income is. This amount should b...